The Live Search cashback team is working aggressively with eBay and PayPal to resolve this issue, which has impacted a very small percentage of our customers. We’re asking those customers to provide an email address and the details of their order herehttps://support.search.live.comso we can keep them updated as we work toward a resolution. We appreciate customers’ patience as we sort through this issue and offer our sincere apologies for the inconvenience.

However the story isn’t quite the same according to emails from support quoted in the FatWallet.com thread. Support person Elizabeth B. wrote to FatWallet.com Senior Member “Dys” today:

I understand your frustration. This issue has proved to be more complicated than we initially anticipated. Our payment team is working with PayPal to determine why so many of these payments are failing.

Some FatWallet.com posters have taken to reporting Microsoft to the Better Business Bureau, and are at least contemplating suing them in small claims court. To Microsoft’s credit, they are working on the issue, but the pr damage being done by what appears to be a technical snafu (in the literal sense of the acronym) would seem to negate any good will created by the cashback program, at least for those affected.